With multiple business lines , how can IT companies deal with the downturn crisis of the market economy ?
The downturn of the market economy is like a driving car encountering a ramp, and the speed begins to slow down or even stop. Under such circumstances, economic growth becomes slower, consumption decreases, and investment decreases, which will also bring a series of problems to enterprises, such as decreased sales, reduced profits, layoffs, tight funds, and intensified market competition. Enterprises need to review and adjust their business strategies, and find ways to deal with the economic downturn in order to maintain competitiveness and survive difficult times.
In order to meet this challenge, cost reduction and efficiency enhancement have become the standard configuration of IT enterprises, that is, to improve the profitability of enterprises by reducing costs and improving efficiency. Especially for some enterprises with multiple business lines, how to know the operating conditions of each business line, how to conduct cost comparison analysis, and how to formulate optimization policies have become issues of great concern to the decision makers of each enterprise.
For example, an IT company has multiple business lines such as A, B, C, D, E, and F. At present, it wants to analyze the cost composition of each business line to see which business line can be optimized, and which business lines can be obtained from where To reduce costs, what should companies do specifically?
Here we can use the strategy of the balanced scorecard to decompose the strategies at the executive level layer by layer, refine indicators, use indicators to quantify the status quo, display results, and assist decision-making.
Specific steps are as follows:
1. Clear strategic goals: including revenue growth, cost control, market share growth, etc.
2. Identify key business processes: identify key business processes that are closely related to strategic objectives, including sales, procurement, production, finance, etc.
3. Identify key indicators: For each key business process, identify key indicators, such as order volume, transaction amount, customer satisfaction, etc. in the sales process.
4. Establish an indicator library: manage all the identified indicators in a unified manner to form an enterprise indicator library. The indicators in the indicator library generally include the name, definition, calculation method, etc. of the indicators.
5. Indicator application: Enterprises can apply indicators to various business scenarios, such as formulating business goals, formulating business plans, monitoring business execution, etc., to achieve refined business management.
In order to efficiently understand the status quo of the above-mentioned business lines in order to make better optimization decisions, a set of business index system and index analysis application platform are especially needed to improve the business efficiency and economic benefits of the enterprise.
Next, let's tell you how Smartbi's business indicator system and indicator analysis application platform can efficiently implement business line analysis and decision-making, thereby helping companies reduce costs and increase efficiency.
1. Smartbi has a built-in set of business indicators library, which can be used out of the box
Smartbi's built-in indicator library covers 60+ key indicators in 6 categories, including LTC, business opportunities, contracts, and income. It can be used immediately after deployment, and the threshold for use is low. Enterprises can refer to excellent experience and avoid the cost of rebuilding all indicators.
How do these indicators and applications work out of the box? We provide data interface table, users only need to pour our business data into the interface table according to certain rules, run our internal ETL script script, the interface table data can be poured into the model, and the data of indicators and applications will be generated .
2. Smartbi's built-in indicator management platform: to meet the needs of enterprises to add personalized indicators
If the enterprise needs to add some personalized business indicators, it is also very easy. Smartbi has a built-in indicator management platform, and the indicators are highly scalable and adapt to the actual business of the enterprise.
Index self-service addition: Support wizard-style addition of new indicators, easy to operate, and achieve the best cooperation between business and IT.
Easy indicator modeling: select analysis dimensions and fact tables to quickly build indicator models
3. Smartbi's built-in analysis applications and tools: from a quick overview of business indicators to self-service analysis
Smartbi has a rich built-in analysis application. After having the index model, you can directly do the upper-level analysis application. For example, the above-mentioned IT functions, we conduct multi-dimensional analysis through self-service analysis, and compare the costs and costs of various business lines, regions, industries, and customer types. Profitability, assisting business adjustment and target planning.
Smartbi supports customizing the second-level indicators, third-level indicators, and fourth-level indicators, etc., so as to realize the traceability of indicators and drill down layer by layer. In addition, the cost analysis and profit analysis in the built-in platform allow you to see the trends and comparisons of these indicators. At the same time, the structure is decomposed and drilled down layer by layer.
As can be seen from the above figure, business line A suffered serious losses: the sales, pre-sales and delivery costs of business line A were particularly high
If these scenarios cannot fully cover our needs, and business line A has low income and low gross profit, should this business line be cut off? Region, industry, etc.? I also want to do multi-dimensional analysis of gross profit. We provide analysis tools, drag and drop to conduct self-service analysis, and finally analyze through voice. For example, the platform automatically generates reports on the gross profit of each area of business line A.
As shown in the figure above, through self-service analysis of the situation of each region and each month of the drill-down business line A, it is found that the pre-sales cost of the headquarters is relatively low, and the pre-sales cost of other regions is particularly high. We can increase the pre-sales training in each region to improve efficiency, and at the same time Business line A has a low proportion of revenue, how to open source? Business strategies can be adjusted by analyzing business line industry conditions, business opportunities, new and old customers, etc.
Through the Smartbi business index system and index analysis application platform, the original financial data is not available, and the cost reduction and efficiency increase are based on the appearance, and the business and financial data is indexed, which is decomposed and drilled down to find the root; the original planning adjustment has no basis, and the decision-making can only rely on experience. , Transformed into early warning of business risks, data insight to help decision-making; from the original business report of good news but not worry, target implementation is difficult to control, changed to time-to-time control of the process of reaching the standard, and in-depth analysis of abnormal causes.